FTSE recovers due to higher commodity prices

Soaring inflation concerns weighed on the FTSE 100 yesterday. The index ended the day 0.2% lower. Gas prices rose after Vladimir Putin ordered that payments for Russian natural gas from Europe be settled in rubles. He gave the central bank a week to find a mechanism.

Oil prices also soared after Russia announced the closure of the Caspian Pipeline Consortium's Black Sea terminal due to "storm damage."

Chancellor Rishi Sunak unveiled its budget update on Wednesday, which focused on measure to ease cost of living pressures such as fuel duty cut and an increase in the Household Support Fund.

Among stocks, British clothing retailer Next posted a 10% gain in annual profit compared to the previous year. However, it has lowered it sales and profit outlook for this year due to the closures of its website in Russia;

The FTSE 100 index was up 0.3% this morning, lifted by higher commodity prices. Investors will be watching PMI figures today from the UK, but also France, Germany, and the US.

 

Things to read today:

Russia’s Oil and Gas Industry is starting to feel the bite of sanctions (WSJ)

Russia’s Top Central Banker wanted out over Ukraine, Putin said No (Bloomberg)

Oligarchs, power and profits: the history of BP in Russia (Financial Times)